The German economy, for long Hungaryʼs most important trade partner, is heading into a deep recession due the massive impact of the coronavirus, or COVID-19, the Bundesbank said in its monthly report on March 23, according to RTT News.
The domestic economy that underpinned growth amid trade disputes, is now weighed down heavily by the COVID-19.
However, public finances are well positioned to meet the situation, the central bank said. The ifo institute last week projected the German economy would shrink 1.5% this year.
The DIW institute had earlier forecast only a 0.1% contraction for 2020, RTT News notes.